The South African Municipal Workers Union (Samwu) at the Molemole local municipality outside Polokwane has threatened to "bring the municipality to a standstill".
The threat comes after the dismissal of three municipal officials yesterday.
The workers accused municipal manager Sudan Lethole of taking a contentious decision to fire labour relations officer Mpodu Morokolo, chief accountant Gladys Rapholo, and administrative officer Rosina Moremi.
The dismissal of the three follows their three-month appearance before a disciplinary hearing for alleged negligence and intimidation.
Moremi and Rapholo were charged with negligence while Morokolo was charged with intimidation.
Moremi and Rapholo allegedly wrongfully paid R315000 and R297000 respectively to two companies without the municipality's authority.
The money was supposed to be paid to a company that had tendered to supply furniture. But they allegedly divided the money between two companies.
Morokolo reportedly threatened to hold the corporate services manager hostage, for refusing to hold a memorial service for a staffer who died early this year. But Morokolo yesterday said he had only lodged a complaint.
Samwu chairman Simon Makosho said the dismissals were unfair and had been motivated by political considerations.